Treaties and Agreements
Bilateral or multilateral agreement between states that seeks to harmonize the interests between parties and increase commercial exchange.
Types of agreements are:
- Free Trade Treaty or Agreement:
A Free Trade Agreement (FTA) is a regional or bilateral commercial agreement to expand the market of goods and services among the participating countries. It consists in the substantial elimination or reduction of tariff for goods between parties, and agreements in services. These agreements are regulated by the WTO or by mutual agreement between countries.
- Partial scope trade agreements:
Most basic type of bilateral agreeement regarding tariffs which seeks to partially free commerce for a selected number of commodities. It is normally seen as a first stage to a more open exchange at a long term.
- Free Trade Promotion:
TPA is an global agreement for free trade. There is a considerable tariff free commerce of goods and services, including financial services. There is not a functional diference between TPAs and FTAs
- Cooperation Agreements
Agreements between regions are called Association Agreements. These include politics, cooperation and commercial aspects among the regions.